Most of the information technology world may be mired in economic malaise, but the carrier Ethernet world isn't, according to a report released Monday that outlines the booming market for the segment. Infonetics Research projects the annual carrier Ethernet market will reach $34 billion in 2013.

Defying the economic recession, the carrier Ethernet market is fueled by global service carriers struggling to meet the exploding demand for bandwidth while they also work to drive down prices.

Infonetics said the largest investments are in IP core and edge routers, carrier Ethernet switches, and optical gear.

"Carrier Ethernet technology is integral to service provider IP next gen network projects aimed at transforming from TDM- to packet-based networks to handle ever-growing consumer, business, mobile backhaul, and video traffic," said Michael Howard, the market research firm's principal analyst for carrier and data center networks, in a statement. Howard said he expects service providers globally to spend $146 billion on carrier Ethernet gear over a five-year period ending in 2013.

He noted that next generation IP transformation projects depend heavily on IP, Ethernet, and multiprotocol label switching, with the big shift focused on the shift to Ethernet from synchronous optical network, or SONET, and synchronous digital hierarchy, or SDH.

The carrier Ethernet market leader is Cisco, which is the pacesetter for Ethernet switches, IP core routers, and IP edge routers. In the core routers segment, Juniper Networks is a strong second and its overall market position is expected to be enhanced by the formation of its new partnership with Nokia Siemens Networks, called Carrier Ethernet Solutions. Juniper owns 60% of the joint venture.

Visit Global CIO Think Tank and download six InformationWeek Analytics Reports on topics including governance, salaries, and mainframes. Find out more (registration required).

Welcome to
TechWeb, the IT professional's online resource for news coverage of the
information technology industry. We know technology news. Our mobile
and wireless news coverage moves as fast as wireless technology itself.
We follow all the devices you depend on to stay connected. Our software
coverage follows the multi-faceted software industry from every angle.
We've got a lock on network security and computer security issues.
We're all over the business of the Web--the Internet business--and the
engines that run it. We have our eyes and ears tuned to the players who
make and run the tools that tie us all together--Google, Microsoft,
eBay, Cisco, Yahoo, Oracle, Apple, Sony--and scores of others. And we
keep close tabs on the backbone of information technology, PC hardware.
We know PCs and Apple computers inside and out. We cover computer
technology, computer news, software news, search engine news, business
software, operating systems, and software development. Our coverage of
tech news includes a strong focus on the security business, its
attendant spyware and viruses, how security relates to wireless
technology and business networking and the security issues surrounding
RFID technology. We closely follow developments in Internet news and
Internet technology, including the spread of broadband and its effect
on Web browsers and the Web business. We watch the VoIP business, and
how VoIP technology is affecting the state of telephony in the
enterprise. And if all that isn't enough, we also track developments in
the IT industry that affect IT jobs, IT careers, and outsourcing.